WPP ScanGroup Plc made a net loss of KSh 37.9 Million at the close of financial year ended 31st December 2021 from a net loss of KSh 1.7 Billion in 2020.
The Group, which is made up of marketing services companies whose offerings include Advertising, Branding and Communication, Consulting, Mar-Tech Solutions, Managing Media Investments, Public Relations and Influence, recorded a pre-tax profit of KSh 134.1 Million in 2021 from a pre-tax loss of KSh 1.5 Billion in 2020.
WPP ScanGroup corporate structure
WPP ScanGroup includes both locally grown companies (Scanad, Squad) and global agency networks (Group M, H+K Strategies and Ogilvy) who partner with some of the world’s leading brands on the continent as well as Africa’s largest corporate companies to develop cohesive marketing strategies for their products and services.
The Group’s Gross Profit increased to KSh 2.4 Billion in 2021 from KSh 2.2 Billion in 2020, an increase of 5%, while interest income increased to KSh 224.4 Million in 2021 from KSh 204 Million in 2020.
Operating and administrative expenses decreased to KSh 2.5 billion in 2021 from KSh 2.7 billion in 2020, a fall of 9%, due mainly to reduced staff costs.
The Group’s profitability, as measured by earnings per share(EPS), improved from (KSh 3.89) in 2020 to KSh (0.04) in 2021, while its balance sheet size grew to KSh 9.4 billion in 2021 from KSh 8.7 billion in 2020.
Directors of WPP ScanGroup do not declare a final dividend for the financial year ended 31 December 2021, similar to 2020.
WPP ScanGroup declared a special interim dividend of KSh 8.00 per share, amounting to KSh 3,457,247,880 based on 432,155,985 shares in issue, which was paid in 2020.
The Group has told its shareholders and the public that it has altered its share capital structure by transferring KSh 4,719Million from the Share Premium account to the Merger Reserve one.
In addition, the company appointed a new CEO, and five non-executive directors during the course of this year while Pratul Shah retired.
In its outlook, WPP ScanGroup Directors said trading conditions continue to be challenging in the Group’s markets.
Apart from inflationary pressure in most of the markets where the Group operates, this situation has been made more challenging by the war in Ukraine, which is likely to impact the marketing budgets of its clients negatively.
The Group warns that uncertainty linked to imminent elections in Kenya is likely to add to this. However, following recent business wins, the Group is taking a cautiously optimistic view of 2022.
Kenya remains the main market for the Group, with 2021 revenues at KSh 5.03 billion. Other markets were Uganda (KSh 743.6 Million), Tanzania (KSh 638.1 Million), South Africa (KSh 122.6 Million), Ghana (KSh 386.9 Million), Nigeria (KSh 153.1 Million) and Others (KSh 523.5 Million).